401k Right Now

[cvm4]

How's everyone feeling at market highs? Market highs & euphoria are great, but sooner or later there's always that voice in the back of your head saying shit will hit the fan. Granted I'm not bitter because as of march 2010, my total percentage rate of return is 56%. However, due to market highs, I have backed off (many months ago) and am only contributing my employer match. I plan on ramping back up once the correction hits. Just curious how others are handling/managing funds right now.

 

[smokemifugotem]

Same here cliff. Funny you say this because I went in and adjusted yesterday. Been a great month alone...just worried the end is near. Too much going on in the world and a little worried anything could spark a drop.

 

[SurpriseMVP]

Do the max your employer matches since it's free money. Take the extra amount you wish to contribute and use a aip (automatic investment plan) to drop the same amount of money each month. That way you are buying at both the highs and lows in the market each month and it will balance out in the long run. Definately ROTH if you eligible, if not traditional is the other option. Not sure if thats what your asking Cliff, just my $.02. Since your only in your 20's you should average at least a 10% return by the time you hit retirement age.

 

[E.J.]

Pounding away.....no change. There are always going to be ups and downs, I am not going to try to overthink things.....

 

[D Quintero]

Just bought a bunch of company stock and watched it gain twenty points in a few days. besides that, i rarely make big
changes. relatively conservative with the 41ok.
big fan of Lance Roberts' X-factor & Tyler Durden Zero hedge

 

[ky70]

I'm in the middle. I don't necessarily mind riding the ups and downs as the goal is to capture the profits from the upward trend over time. But with the market being so high now I am considering moving my balance and near future contributions to a securer low yield option...moving back to my more riskier higher yield options after the market comes back down a bit.

I'm not sure if I'll bother but when the FED raise rates(at some point they'll have to) I think the market will then come back to earth.

 

[Jfire]

You can't time market corrections either high or low consistently. When they're down your buying power goes up. When they're up your portfolio gains value. If you miss out consistently by even a half a point (total gain) over years to come, compounded..... Your going to lose in the long term. I've been trying to convince my BLaw at Oppenheimer in Manhattan otherwise. (internal wholesaler) The above is what he has been reading to me verbatim for the last 5 years now. So after arguing with him every year thinking I know so much from watching fast money I've agreed to only make slight corrections in my portfolio once a year.

 

[abomb60]

Wife is away for work but she just checked one of our 401k's and we're way ahead at least for now. We don't manage it we have a financial planner who does but so far so good.

 

[StogieNinja]

Yeah... we're a single-income, four-child family, two of whom are going to be in private school next year.

I'm not sure "managing" or "handling" are the right words for what I'm doing with my funds right now.